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Scottish Equitable International offers redemption

SCOTTISH EQUITABLE INTERNATIONAL (DUBLIN)

Private Client Portfolio Capital Redemption Bond

Type: Unit-linked bond

Aim: Growth by investing in Scottish Equitable International funds and external Oeics or unit trusts from any mainstream fund manager

Minimum investment: £75,000

Fund links: Choice of 26 Scottish Equitable International funds and external Oeics or unit trusts from any mainstream fund manager

Options: Initial costing, five-year costing, ongoing costing

Allocation rates: Initial costing option &#45 92.75%, five-year costing option &#45 100%, ongoing costing option &#45 100.5%

Place of registration: Dublin

Switches: Up to 12 free switches a year between Scottish Equitable International funds, thereafter the greater of £25 or 1% of switched amount

Charges: Initial costing option &#45 Initial 7.25%, five-year costing option &#45 annual 1.8% for five years, ongoing costing option &#45 annual 1.5% for first five years, thereafter 0.5% a year

Commission: Initial 5.75%, renewal up to 1% a year

Contact: www.scoteqint.com

Scottish Equitable International&#39s private client portfolio capital redemption bond is aimed at businesses and corporate trustees who do not want the payment of benefits to be linked to lives assured.

Looking at how the product is good for IFAs and their clients Teare Rose IFA Julie Thomas says: “This is a highly flexible investment which presents a very powerful investment combination to investors. The main feature is that there are no lives assured, providing a number of benefits for investors. These include no death benefit or change of lives insured, which would trigger a chargeable event. The literature is fairly straightforward and is not too long for the client to read. The choice of charging structures seems pretty standard, with three options becoming the norm.”

Thomas regards Royal Skandia&#39s capital redemption bond as the main competitor for the Scottish Equitable International product.

She concludes her assessment of the bond with one complaint. “The charges are settled from the cash account, therefore it is the responsibility of the adviser to ensure that there are sufficient funds within the account to cover any liabilities.”

BROKER RATINGS:

Suitability to market Fair
Investmnet strategy Fair
Charges Fair
Adviser remuneration Fair
Overall 8/10

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